Japanese Disaster, effect on markets

Mark Paine, Managing Director of Meyado Private Wealth Management Singapore, comments on recent events in Japan.

Firstly we need to acknowledge the extent of the devastation and effect on human lives this terrible event has had, our hearts and thoughts go out to those affected by the disaster.

Since events started to emerge on Friday stock markets have been in steady decline.  News in Europe has not been good either and this has compounded market falls in the region. 

We have been advocating a more conservative balance in portfolios since Q4 of 2010, using gold and precious metals to underpin most portfolios, as well as utilising alternative asset classes to protect capital and enhance growth over and above low interest rates.

With smaller exposure to equities we are now waiting to see buying opportunities as the market has generally over-reacted and value creation could potentially be around the corner, although not just yet.

For clients creating capital by building up assets on a cost averaging basis, saving each month or quarter, the strategies of buying into volatile equities over time works well.  We continue to see longer term value in established and emerging markets and will continue to drip feed in over time to achieve value.

As is always the case, everyone has individual circumstances and would be best advised to discuss with their financial adviser as to the best course of action for them individually, but in the main with proper portfolio construction it is more a case of looking for buy in opportunities rather than panic selling.  To contact an adviser at Meyado contact us at singapore@meyado.com